South Australia has launched a new AU$17.5 million government initiative that offers matched funding for innovative gas projects to meet the state’s future energy needs.
The gas initiative offers grant funding of up to 50 per cent of expenditure on significant projects, with up to AU$2.5 million per eligible project. The initiative will allocate funding from a newly established Gas Security Infrastructure Fund to stimulate investment in a range of projects that increase gas supply or gas capacity, or both.
The projects can include those that enhance geological knowledge of potential gas supplies, drive the adoption of new technologies, gas storage solutions or projects that support infrastructure to unlock new gas supply or improve deliverability.
Tom Koutsantonis, Treasurer of South Australia, said: “Gas also remains an important source of long-duration dispatchable capacity, vital to system stability – particularly during periods of peak demand.
“Bringing in more gas supplies will give long-term certainty for our energy system, our community and our economy. This initiative is another step in a comprehensive and cohesive strategy to ensure our state’s energy future while cementing our role in the global energy transition.”
The state government is hoping that the projects will help the state meet its mid-to-long-term energy needs. Funding decisions will preference shovel-ready projects that can most likely deliver new gas supplies by the end of 2028. The government may consider grants of more than AU$2.5 million if the applicants can demonstrate that the project will have a greater expected outcome in meeting the state’s energy needs.
Applicants will be required to state how the projects can directly benefit South Australian gas users.
Australian Energy Producers South Australia Director David Slama said the state’s new initiative is an important signal to incentivise investment.
“The SA Gas Initiative is an important step towards ensuring our state has reliable and affordable gas supply that is essential for keeping the lights on and powering homes, businesses and industry,” Slama said.
“Driving more investment in new gas supply and infrastructure will help South Australia realise its full potential for economic growth, job creation and energy security.”
